Geraci Explains What's Behind China's Crackdown on Some Companies

Italian economist Michele Geraci explained why the Chinese government is cracking down on some companies such as Alibaba, Tencent, etc. on his Facebook page. “Take Alibaba: What they do is sell customer-to-customer a little bit like eBay, but they also mobilize customers’ deposits, who receive some interest on their prepaid cards. This has an impact on the interest rate curve, which is something that Beijing and not Jack Ma should manage. Another case is Hello: they not only do bike-sharing, but they also collect millions and millions of data of users, which in the end have an impact on the macro-management of the country.